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Analog Semiconductors Stocks Q4 In Review: NXP Semiconductors (NASDAQ:NXPI) Vs Peers


Jabin Bastian /
2022/03/30 7:05 am EDT
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Earnings results often give us a good indication what direction will the company will take in the months ahead. With Q4 now behind us, let’s have a look at NXP Semiconductors (NASDAQ:NXPI) and its peers.

Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. The biggest secular growth drivers currently are the adoption of electric vehicles, 5G networks and Internet of Things connectivity, and demand for chips that reduce power consumption. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years.

The 9 analog semiconductors stocks we track reported a strong Q4; on average, revenues beat analyst consensus estimates by 2.68%, while on average next quarter revenue guidance was 4.03% above consensus. There has been a stampede out of high valuation technology stocks, but analog semiconductors stocks held their ground better than others, with the share price up 5.39% since earnings, on average.

NXP Semiconductors (NASDAQ:NXPI)

Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.

NXP Semiconductors reported revenues of $3.03 billion, up 21.2% year on year, beating analyst expectations by 1.19%. It was a very strong quarter for the company, with a significant improvement in gross margin and a very optimistic guidance for the next quarter.

“We experienced significant design win traction across the entire portfolio and especially within the areas of our strategic growth drivers. The engagement and performance of our employees has been truly outstanding, we are extremely proud of their adaptability, dedication and hard work in the face of adversity. We continue to see growing customer demand, outstripping supply, as inventory across all end markets remains very lean. Taken together, this underpins our continued confidence of robust growth throughout 2022,” said Kurt Sievers, NXP President and Chief Executive Officer.

NXP Semiconductors Total Revenue

The stock is down 5.26% since the results and currently trades at $194.62.

Is now the time to buy NXP Semiconductors? Access our full analysis of the earnings results here, it's free.

Best Q4: ON Semiconductor (NASDAQ:ON)

Spun out of Motorola in 1999, and built through a series of acquisitions, ON Semiconductor (NASDAQ: ON) is a global provider of analog chips with specialization in autos, industrial applications, and power management in cloud data centers.

ON Semiconductor reported revenues of $1.84 billion, up 27.6% year on year, beating analyst expectations by 3.08%. It was an impressive quarter for the company, with a significant improvement in gross margin and a beat on the bottom line.

ON Semiconductor Total Revenue

The stock is up 15.1% since the results and currently trades at $66.15.

Is now the time to buy ON Semiconductor? Access our full analysis of the earnings results here, it's free.

Weakest Q4: Sensata Technologies (NYSE:ST)

Originally a temperature sensor control maker and part of Texas Instruments for 60 years, before eventually being spun out, Sensata Technology Holdings (NYSE: ST) is a leading supplier of analog sensors used in industrial and transportation applications, best known for its dominant position in the tire pressure monitoring systems in cars.

Sensata Technologies reported revenues of $934.5 million, up 3.1% year on year, beating analyst expectations by 1.73%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

The stock is down 6.69% since the results and currently trades at $53.50.

Read our full analysis of Sensata Technologies's results here.

Monolithic Power Systems (NASDAQ:MPWR)

Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.

Monolithic Power Systems reported revenues of $336.5 million, up 44.3% year on year, beating analyst expectations by 4.57%. It was a very strong quarter for the company, with a beat on the bottom line and revenue guidance for the next quarter above analysts' estimates.

The stock is up 26% since the results and currently trades at $512.96.

Read our full, actionable report on Monolithic Power Systems here, it's free.

MACOM Technology (NASDAQ:MTSI)

Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.

MACOM Technology reported revenues of $159.6 million, up 7.48% year on year, in line with analyst expectations. It was a decent quarter for the company, with a significant improvement in operating margin and guidance for the next quarter roughly in line with what analysts were expecting.

MACOM Technology had the weakest performance against analyst estimates among the peers. The stock is down 3.82% since the results and currently trades at $60.65.

Read our full, actionable report on MACOM Technology here, it's free.

The author has no position in any of the stocks mentioned